Homebuyers are stepping into the market as home price growth slows, mortgage payments fall and days on the market increase, according to a new report from Redfin.
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Home buyers are stepping back into the market as home price growth slows, mortgage payments fall, and days on the market increase. redfin Say.
A typical U.S. home sold nearly $40,000 less than its June peak of $391,000 in the four weeks ending Dec. 18. Average mortgage rates also fell to his 6.27%, about $300 less than a typical homebuyer’s monthly mortgage since interest rates peaked at his 7% in late October. . Meanwhile, a typical home for sale was on the market for 39 days before signing, the longest period since August 2020.
Mortgage purchase applications also increased significantly, with applications up 4.6% month-on-month. Redfin’s Home He responded to requests for tours and other homebuying services, and Redfin’s Homebuyer Demand Index also rose 6.5%.
“A significant number of buyers have emerged from wood products in recent weeks as interest rates have fallen,” Seattle Redfin agent Shoshana Godwin said in a statement. Many people who have purchased want to seize this moment as they can take the time to tour the home and negotiate prices and terms with the seller. I don’t think I’ll be back, but it’s getting warmer.”
So far, the slight increase in demand has not contributed to the increase in pending home sales or new listings, Redfin’s report said. Economists at Redfin said the change is unlikely to be reflected in the data until mid-January, as the holiday season slows the economy and new listings are likely not to pick up until the spring.
In the four weeks ending December 18, US home sales prices fell year over year in 14 of the 50 most populous metropolitan areas in the US.
Some of the steepest price drops have occurred in some of the country’s most expensive cities. In San Francisco, prices are down 9% year-over-year. Pittsburgh, 6.2% YoY. San Jose: 5.8% YoY. Los Angeles is up 4.7% year over year. New York prices also fell on an annual basis for the first time since June 2020. However, the reduction was less than 1%.
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